PVC volatility is lower The market is still oversupplied

News: PVC social inventory increased by 3.
51% month-on-month last week, 22.
92% year-on-year, 0.
95% month-on-month and 3.
56% year-on-year in East China, and 7.
65% month-on-month and 71.
54%
year-on-year in South China.
East China stocks are 320,000 tons, South China 211,000 tons
.

Spot market: Qilu Chemical City PVC market weak downward, offer down
.
The price of calcium carbide method 5 type is 5480 yuan / ton, the price of ethylene Qilu S1000 is 5550 yuan / ton, and the price of S700 is 5650 yuan / ton.

Warehouse receipt inventory: exchange warehouse receipts reported 0 lots, intraday -2650 lots
.
Main position: The top 20 long positions in the main contract are 102555 lots, +29956 lots, short positions are 87216 lots, +28674 lots, and the net position is 15339 lots, net long increases
.

Summary: The accelerated spread of the overseas epidemic has caused concern, and the weak trend of crude oil has also hit market confidence
to a certain extent.
And the operating rate of PVC production enterprises has rebounded, and social inventory is still high, indicating that the market is still oversupplied
.
Formosa Plastics' reduction in PVC prices in April also suppressed
domestic prices to a certain extent.
Although most of the PVC downstream products enterprises have resumed work, the overall operating rate is still not high
.
These factors will suppress
the price of PVC.
Although the Fed opened the unlimited QE mode and released a 2 trillion economic stimulus plan, it failed to offset the panic in the market, and the market focused on the evolution of the overseas epidemic situation and when crude oil will stop falling and rebound
.
In terms of operation, it is recommended that investors reduce their holdings in batches at short orders and drop their bags
.